Toronto - Alturas Minerals Corp. (Alturas or the 'Company') (TSXV: ALT), (BVL: ALT) is pleased to announce that it has entered into a Letter of Intent ('LOI') with Sociedad Contractual Minera Resguardo ('Minera Resguardo' or the 'Optionor'), a Chilean mining exploration company, to lease and acquire 100% of its Resguardo Copper-Gold Project (the 'Concessions' or 'Resguardo'), located about 95 km northeast of Copiapo, in Region III of northern Chile, referred to as 'Region de Atacama'.
Miguel Cardozo, President & CEO of Alturas commented, 'The Resguardo project represents a key strategic development for the Company in Chile, one of Latin America's premier mining jurisdictions. Alturas will resume its exploration activities in Chile's mineral-rich Andes Mountain chain. The LOI also includes a 5-year mining lease agreement that allows the Company to explore and commercially mine 18 contiguous mining concessions covering a total of 3,891 hectares. Alturas intends to establish a firm presence in the Paleocene-Eocene Metallogenic Belt of northern Chile, immediately west of the Miocene age Maricunga Metallogenic Belt'.
The Transaction
The Company will have a period of three (3) months, from the signing date of the LOI, to complete a due diligence review on the Concessions, the Optionor, all applicable technical studies, and on any other matter deemed appropriate by the Company (the 'Due Diligence'). The Parties further agree that upon the execution of this LOI, a Definitive Agreement (the 'Agreement') will be executed not later than thirty (30) days from completion of the Due Diligence.
With the execution of the Agreement, the Optionor shall grant Alturas a mining option (the 'Option') to acquire a one hundred percent (100%) undivided interest in the Concessions. The Option will be valid as from the Effective Date and will expire four (4) years after the signing of the Agreement. The term of the Option shall be mandatory for the Optionor and voluntary for Alturas.
The aggregate purchase price for the Concessions is structured as cash payments totaling US$2.75 Million (all taxes inclusive), to be paid in five (5) installments, with US$50,000 within fifteen days of the execution of the Agreement (the 'Effective Date') and four (4) installments payable as follows: On or prior to the first anniversary of the Effective Date, the amount of US$100,000; On or prior to the second anniversary of the Effective Date, the amount of US$150,000; On or prior to the third anniversary of the Effective Date, the amount of US$300,000 and, On or prior to the fourth anniversary of the Effective Date, the amount of US$2,150,000.
If, as a result of the mining activities performed by Alturas on the Concessions, a porphyry is confirmed, the purchase price for acquiring title over the Concessions payable by Alturas to the Optionor will be increased by ten percent (10%) of the selling price obtained by Alturas for the transfer of the Concessions to a third party, or US$30 Million, whichever is greater.
Once the Company exercises the Option, a 1.5% Net Smelter Return ('NSR') Royalty will be applicable (the 'NSR Royalty') as an additional consideration for the transfer of the Concession to be effective as from commencement of Commercial Production on the Concessions. Until up two (2) years after the commencement of Commercial Production, the Company may buy five tenths' percent (0.5%) of the NSR Royalty (the 'Purchased NSR') at a price between US$2 Million and US$6 Million depending on the size, grade, and type of mineralization as determined in accordance with National Instrument 43-101 ('NI 43-101'). The Optionor also grants a right of first refusal for the acquisition of the remaining NSR Royalty.
About Sociedad Contractual Minera Resguardo and Non Arm's Length Party Disclosure
Sociedad Contractual Minera Resguardo ('Minera Resguardo') was incorporated in 2012 to acquire additional concessions in the Resguardo project area. It is controlled by Sociedad de Inversiones Gema Limitada (52%), with partners Inversiones Mineras El Refugio S.A. (30%) and CP Group Chile Limitada (18%), both owned by Peruvian investors. CP Group Chile Limitada is a Chilean subsidiary of the family-owned CP Group S.A.C. Peruvian company, which shareholders are Mr. Miguel Cardozo, CEO and Director of Alturas Minerals Corp. (the Issuer) and his wife Mrs. Sara Pajares, owning 50% of this company each.
About Alturas Minerals
Alturas is a Canadian corporation, and is the indirect parent of the Peruvian company, Alturas Minerals S.A. ('Alturas Peru') and of the Chilean company, Alturas Chile Limitada ('Alturas Chile'). Alturas had been exploring various mineral projects in Peru between January 2004 and 2020 and between 2012 and 2014 in Chile through its subsidiaries. After interrupting its exploration activities in Chile and Peru due to financial constraints, Alturas is now focusing in new business opportunities. Alturas has approximately $1.2 million in cash and cash equivalents and approximately $0.5 million in other securities, as of December 31, 2020.
Contact:
Mario Miranda
Tel: (416) 363-4900
ALTURAS MINERALS CORP. 